Tweet
Hello all
we are in the situation of moving out of our home for at least six months to move to a different city. We intend to rent out our house, but are unsure whether to claim depreciation or elect not to.
On the elect not to side is simplicity, we don't have to make several messy calculations simply to have it reversed when we move back in six months later. (Especially because the rental period will cross financial years)
On the other hand on page 32 of the IR 264 Rental Income guide published by the IRD it says "Once you have notified us of your election not to depreciate an asset you cannot claim depreciation in future years"
In the long term it is likely that our present home will become a rental property for us, and at that point we will want to depreciate it.
So here is a question for the accountants out there, what should we do? If we don't depreciate now, is there some way to depreciate in the future?
we are in the situation of moving out of our home for at least six months to move to a different city. We intend to rent out our house, but are unsure whether to claim depreciation or elect not to.
On the elect not to side is simplicity, we don't have to make several messy calculations simply to have it reversed when we move back in six months later. (Especially because the rental period will cross financial years)
On the other hand on page 32 of the IR 264 Rental Income guide published by the IRD it says "Once you have notified us of your election not to depreciate an asset you cannot claim depreciation in future years"
In the long term it is likely that our present home will become a rental property for us, and at that point we will want to depreciate it.
So here is a question for the accountants out there, what should we do? If we don't depreciate now, is there some way to depreciate in the future?
Comment